Akzo Nobel is to divest part of its liquid coatings activities in agriculture and construction equipment (ACE) to BASF. In a separate deal, Akzo Nobel will acquire BASF Coatings’ wood construction business.
Although the financial details of the two transactions were not disclosed, the BASF business had sales of 17 million Euros in 200, the ACE business 9 million Euros.
The divestment involves the ACE activities of Akzo Nobel’s Car Refinishes business in Germany, Austria, France, Italy, Switzerland and Spain. The manufacture of these coatings will be transferred from Akzo Nobel’s sites in Zona Franca (Spain), Stuttgart (Germany) and Montataire (France) to one of BASF’s coatings sites.
With regard to Akzo Nobel’s wood construction acquisition, the production of the BASF products – which are mainly used to coat doors and windows used in the construction industry (joinery) – will be transferred from the BASF site in MÃ¼nster to Akzo Nobel’s Decorative Coatings site in Cologne, Germany.
Manufacturing facilities will not be included in the deals.
Both companies expect to finalise the agreements by September 2004.